Tag: oil and gas exploration

  • Cyprus: The mouse that went boom

    Cyprus: The mouse that went boom

    posted at 6:02 pm on August 8, 2011 by J.E. Dyer

    You’ve got to feel for Cyprus.  The island starts out divided between Greek Cyprus and “Turkish Northern Cyprus,” an entity created by a Turkish armed invasion in 1974 and recognized by, well, Turkey.  With her historical Greek roots, Greek Cyprus – an independent nation – has extensive exposure to Greek government bonds, and has been fighting a rearguard action throughout 2011 to prevent a faster downgrading of Cypriot public debt.  (Some US states now face a somewhat similar potential domino effect from the downgrading of US debt.)

    Arms and the explosion

    Back in January 2009, Cyprus was the unfortunate flag state of the M/V Monchegorsk, chartered by Iran to transport arms to Syria in violation of UN Security Council Resolution 1747.  Cyprus lies off Syria’s coast, and wanted nothing to do with confiscating the Assad regime’s prohibited arms delivery.  But Cyprus ended up – under tremendous pressure – accepting the confiscated cargo: 98 containers of arms and explosives.  (Sprightly account of the history on this here.)

    On 11 July 2011, the arms shipment, which had been held without further processing under a makeshift structure at a Cypriot naval base for over two years, found itself in the path of a summer fire.  Exploding, it killed 13 people, including the chief of the Cypriot navy, and destroyed the electric power plant that provided 53% of the power used by Greek Cyprus.  The loss of power has put Cyprus in an economic tailspin.  Moody’s downgraded Cypriot debt to just above junk status in late July, making it likely that EU member (and Eurozone participant) Cyprus would at some point seek a bailout along with Greece, Portugal, and Ireland.

    Cypriots, blaming the government of old-style leftist Demetris Cristiofas (and, without electric power, having little else to do), have been flooding the streets in protest.  Cristiofas’ parliamentary coalition was split when its major ally (the centrist Democratic Party) abruptly pulled out on Wednesday 3 August.  Cristiofas holds the office of president and will not face the voters again until 2013, but the loss of his coalition means the government will be paralyzed on contentious issues.  He appointed a new cabinet on Friday, but was unable to bring in any new ministers from his former ally, the Democratic Party.  Nevertheless, his new finance minister put a brave face on things, asserting that “there is no issue at the moment” of Cyprus requesting a Eurozone bailout.

     

    Gas and Turkey

     

    This may well be due in large part to Cyprus’ determination to forge ahead with offshore gas drilling.  The government in Nicosia has put the word out repeatedly over the last couple of weeks that it expects drilling off the southern coast to start on (or before) 1 October.  Cyprus has been moving smartly to explore and get drilling underway since concluding a maritime boundary agreement with Israel in 2010.

     

    USGS map of Levant Basin oil/gas survey area

    But Turkey is unalterably opposed to this course.  Turkey’s position is that, having invaded Cyprus and established a Turkish entity there which no one else recognizes, she is entitled to forestall all activity in the Cypriot economic exclusion zone (EEZ) until the status of Cyprus is worked out through negotiation.

     

    That won’t be happening any time soon.  On 19 July, Turkey’s Recep Tayyip Erdogan announced a significant change in the country’s negotiating stance:

     

    The Turkish Prime Minister has sent a thunderbolt to the United Nations and leaders of Cyprus by announcing that his country is no longer prepared to accept the concessions it has agreed to in order to help with the reunification of Cyprus in line with a UN plan back in 2004.

     

    Recep Tayyip Erdogan said the Turkish side will accept nothing short of recognition of a two-state solution on the island, effectively meaning if the current round of UN sponsored talks fail Turkey will likely seek international recognition for the break-away state.

     

    The “two-state solution” thing is certainly going around (and that’s a whole other post).  But in the wake of this “thunderbolt” from Erdogan, Cristiofas pulled out of the UN-sponsored negotiation meeting scheduled for Friday, 5 August, without indicating a date on which he would be prepared to resume negotiations.   Certainly his governing-coalition woes are a key reason for the pull-out, but they are extremely unlikely to be the only reason.  It is not clear what options Cyprus has now, with the Erdogan government renouncing the previous basis for negotiations, and determined not on reunification of the island, but on a two-state solution.  Cristiofas cannot feel that there is much to say to Turkey right now.

     

    But 1 October is less than 8 weeks away.  Turkey expresses continued determination to prevent a drilling start, and for implied threats of that kind there is a history.  The Turkish navy has harassed exploration vessels operating in the Cypriot and Greek EEZs before – to the point of preventing their activities.  In mid-November 2008, a Turkish warship prevented a Norwegian survey vessel from operating off the southern coast of Cyprus.  In March of 2011, a Turkish warship interfered with an Italian vessel in the Greek EEZ off Crete, which had Athens’ permission to survey the seabed for a communications cable to be laid between Italy and Israel.  (See here for an account of an escalation with Greece in 2010, via a NOTAM duel and Turkish fighter patrols over a new undersea oil/gas find.)

     

    Greece has taken note of a pointed statement by Erdogan at a 2011 naval conference in Ankara:

     

    We want a navy to dominate the Aegean and Eastern Mediterranean, and also stand before the Russian Black Sea Fleet.

     

    Nothing is happening in isolation in the Eastern Mediterranean, and Cyprus, geographically and politically, is in the middle of it all.  The Arab Spring has upset one set of assumptions, putting Syria (and Egypt) in play.  The perennial security concerns of the major nations – Russia, Greece, Turkey – are dictated by geography and history: if Syria is in play, that causes strategic discomfort for the other big nations.  Russia’s concern is particularly acute because Turkey lies across her maritime path out of the Black Sea, and on the other side of the restive, largely Muslim Caucasus.  Turkey asserting a new, peculiarly Turkish realm of influence (e.g., by pilfering Syria as a client from Iran) would regenerate an Ottoman-like vulnerability on Russia’s southern flank.

     

    Geography and geostrategy

     

    The facts of geo-history combine with undersea resources to make Cyprus a strategic prize in the Eastern Mediterranean.  Considered in the light of Erdogan’s recent electoral victory, his suppression of internal checks on his power, and his various statements indicating neo-Ottoman aspirations, the July 2011 about-face on Cyprus policy comes off as a clear determination to keep Turkey in absolute control of at least part of Cyprus.  There are two geographic reasons for this:  Cyprus’ proximity to the Levant Basin oil and gas reserves, and Cyprus’ relation to the coast of Syria.  Basically, Cyprus commands the Syrian coast.  Holding Cyprus and being able to fortify it is a means of holding Syria at risk from the sea.

     

    Eastern Mediterranean region

    That would come in handy if either Russia or Iran got in a position in Syria to project power from the Syrian coast.  It’s a blocking move on Turkey’s part as much as anything.  Iran, fighting hard just to keep the Assad regime in power (see here and here), is somewhat distracted at the moment, but Russia has a very long historic and geostrategic vista of security concerns about formerly-Ottoman Turkey, the Aegean, and the Black Sea.  That is why Russia has sought to maintain at least one Mediterranean base whenever possible over the last two-plus centuries, to be able to flank her Black Sea neighbors and influence conditions in the Mediterranean when necessary.

     

    Cyprus has become uniquely vulnerable at a uniquely unstable time.  It doesn’t all boil down to oil and gas:  Americans are almost the only people on earth who don’t have to think 24/7 about geography as a key component of their security, and we foolishly dismiss the geographic security orientation of other nations, supposing that everything is “about” either oil or ideology.  But Russia can very easily be held at risk by Turkey because of geography, and the more Ottoman-sounding Erdogan’s rhetoric and actions are, the more Russia will worry about that and take steps to avert it.  Maneuvering over Cyprus because of her relative location is as high a priority as anything else.

     

    The unreliability of US power contributes to the uneasy mindset of various actors around the “Great Crossroads” of Europe, Asia, and Africa.  The EU, the US, and our collective defense organization (NATO) are failing in Libya and looking tired and dispirited in Afghanistan.  It is less and less unthinkable that Turkey will render the UN process in Cyprus moot because she has no intention of giving up her free hand in Northern Cyprus – and that she will add new offensive capabilities to the 30,000 troops she has occupying the island.

     

    Unfortunately, the stage is set for Cyprus to matter a great deal.  If having a naval base in Syria becomes untenable for Russia, having the use of bases in Greece – perhaps even in Greek Cyprus – is not out of the question.  So much has the Pax Americana faded that Britain, France, and Italy would be likely to quietly welcome such a development, rather than regarding it with suspicion and alarm.

     

    Naval postures

     

    If Turkey’s posture in the Eastern Med seems to come off somewhat like China’s in the waters of East Asia, it should not be surprising that the two nations, which have conducted unprecedented military exercises together over the last year, have also been conducting unprecedented naval task force deployments to distant seas.  In 2010, China, for the first time ever, sent an operational naval task force to the Mediterranean for a series of port visits.  Turkey, for the first time since Ottoman days (i.e., World War I), deployed a task force for a non-NATO “patrol” of the Mediterranean.

     

    This summer, Turkey sent a four-ship naval task force to the Indian Ocean and East Asia.  Turkey (like China) has maintained a presence in the antipiracy operations off Somalia, but this summer’s deployment has so far entailed port visits in Oman, Abu Dhabi (UAE – “for the first time in centuries”), India, Pakistan, Malaysia, Indonesia, China, and Japan.

     

    J.E. Dyer’s articles have appeared at The Green Room, Commentary’s “contentions,Patheos, The Weekly Standard online, and her own blog, The Optimistic Conservative.

  • Venezuela to supply fuel to Turkey

    Venezuela to supply fuel to Turkey

    CARACAS, VENEZUELA

    Venezuela mapVenezuela says it has agreed to sell fuel to Turkey and that the two countries have pledged to invest jointly in oil projects.

    The agreements are part of an energy accord signed by Foreign Minister Nicolas Maduro during a visit to Ankara.

    The foreign ministry said in a statement Thursday that Turkey will receive fuel and that the countries will cooperate in oil projects, including planned Turkish investment in Venezuela’s crude-rich Orinoco River basin.

    It did not give details of projected investment or how much fuel would be sold.

    President Hugo Chavez has sought to diversify Venezuela’s oil industry and boost exports to allies while reducing dependence on the United States, the top buyer of Venezuelan oil.

  • Turkey stages Cyprus drills amid oil dispute

    Turkey stages Cyprus drills amid oil dispute

    Archived from Kuwait Times on June 18, 2009

    oil search cyprus

    ABOARD THE TCG GEMLIK: Turkish and Turkish Cypriot warships staged search and rescue drills off the island of Cyprus yesterday amid tensions over a disputed search for oil and gas. The frigate Gemlik and other vessels took part in the maneuvers off the northern town of Famagusta, which included extinguishing fire on a ship, rescuing illegal migrants from a sinking rubber boat and rescuing the crew of a sea plane in distress.

    Turkish Cypriot military officials denied the maneuvers were a show of force, but it comes amid a rekindled dispute with Greek Cypriots over who is entitled to the island’s potential offshore oil and gas wealth. Cyprus was divided in 1974 when Turkey invaded in response to a coup by supporters of union with Greece. The island has an internationally recognized Greek Cypriot south and a breakaway Turkish Cypriot north where Turkey maintains 35,000 troops.

    Turkey does not recognize European Union-member Cyprus as a sovereign country and strongly objects to a Greek Cypriot search for mineral deposits inside the island’s exclusive economic zone. That area covers 51,000 square kilometers of seabed off the island’s southern coast. Turkey has warned Cyprus against pursuing “adventurist policies” and says Turkish Cypriots should also have a say in how the island’s oil-and-gas rights are used.

    Cyprus government spokesman Stefanos Stefanou said Tuesday the search for fossil fuels inside the island’s zone remains its sovereign right and it’s protesting the military drills at the UN and EU. But Stefanou said both communities could share in the possible bounty if ongoing reunification talks prove successful. Cyprus President Dimitris Christofias and Turkish Cypriot leader Mehmet Ali Talat restarted stalled peace talks last September, but have yet to reach a breakthrough in the slow-moving process.
    This is an additional motivating factor … to continue negotiations so that we can reach a just, viable and functional settlement, to reunify our homeland,” Stefanou said.

    The involvement of a US energy firm Noble Energy, which is set to launch seismic work inside Cyprus’ zone later this year, could further complicate matters for Turkey, a US ally. Cyprus has licensed Noble to search for fossil fuels near two significant gas discoveries in its Israeli offshore blocks. US authorities are siding with the Cypriot government, saying “the involvement of US firms in such investment is a business decision, not a political one.” Cyprus has also signed agreements with Lebanon and Egy
    pt to mark out undersea borders to facilitate future oil and gas exploration, prompting Turkey to urge those two countries to scrap the deals.

    Turkey’s stakes in the dispute are higher as Cyprus has threatened to further impede Turkey’s EU accession negotiations because Turkish warships had interfered with an offshore fossil fuel survey last year. Turkey’s EU membership bid is already hobbled with eight of 35 negotiation chapters frozen over its refusal to open its air and sea ports to Cyprus “Turkey’s policy of solving the problem through use of force has not brought any good to its advantage in the international arena,” said Prof. Yuksel Inan
    at International Relations Department of Bilkent University based in Ankara. “Instead, Turkey should seriously think about taking the issue to the Security Council as a temporary member now.” – AP

  • Turkey Mulling Oil, Gas Search off North Cyprus

    Turkey Mulling Oil, Gas Search off North Cyprus

    Turkey considering search for oil, gas in waters off Cyprus’ northern coast

    The Associated Press

    By MENELAOS HADJICOSTIS ASSOCIATED PRESS WRITER
    NICOSIA, Cyprus October 21, 2010 (AP)

    oil cyprus

    Turkey is considering starting oil and gas exploration off the northern coast of Cyprus, a senior Turkish Energy Ministry official said Thursday.

    The official said initial seismic research conducted in waters between Turkey’s southern Mediterranean port city of Mersin and Cyprus, 200 kilometers (124 miles) away, “has yielded certain data.”

    He said Turkey is carrying out further studies on how to proceed with exploration and is looking into possible partnerships with international gas and oil giants.

    The official spoke on condition of anonymity in line with Turkish rules that bar state officials from speaking to reporters without prior authorization.

    The news came as Lebanese Prime Minister Saad Hariri said his country is finalizing its sea boundaries with Syria to facilitate a search for offshore mineral deposits.

    “Now we have a much better relationship with Syria and we are negotiating the economic zone,” Hariri told reporters after talks Thursday with Cyprus President Dimitris Christofias in Nicosia.

    Lebanon signed an agreement with Cyprus to mark out sea boundaries in 2007, but ratification by Lebanese legislators has stalled. Hariri referred to “differences” between the two countries, but didn’t elaborate.

    Hariri said the agreements with both Cyprus and Syria will be sent to parliament for ratification, “hopefully soon”.

    Cyprus signed a similar agreement with Egypt in 2003.

    Oil and gas exploration has threatened to increase tensions between rivals Cyprus and Turkey.

    Cyprus was divided in 1974 when Turkey invaded after a coup on Cyprus by people who favored uniting the island with Greece. The island has an internationally recognized Greek Cypriot south and a breakaway Turkish Cypriot north, where Turkey keeps 35,000 troops.

    Cyprus joined the European Union in 2004, but only Greek Cypriots — who represent the island in the bloc — enjoy the benefits.

  • Turkey announces plans to explore offshore Cyprus

    Turkey announces plans to explore offshore Cyprus

    Eric Watkins
    OGJ Oil Diplomacy Editor

    LOS ANGELES, Oct. 22 — Turkey’s Energy Minister Taner Yildiz, in a move designed to stir passions in the Eastern Mediterranean region, has signed a cooperation protocol with Energy Minister Sunat Atun of Turkish Republic of Northern Cyprus.

    “We will begin work on oil exploration around Cyprus and in our exclusive territory,” Yildiz said. “We are working on supplying the Greek Cypriot side with energy if requested,” Yildiz said, clearly aware that his remarks would nettle the southern half of the island.

    Turkey invaded northern Cyprus in 1974 and set up an enclave that is still recognized only by Ankara. By contrast, the southern half of the island is ruled by the internationally recognized Greek Cypriot government, which represents Cyprus in the European Union.

    Yildiz said Turkish scientists had received signs of oil deposits following seismic research undertaken in the exclusive economic zone between Cyprus and Mersin on Turkey’s southern coast.

    The Turkish minister said there was the possibility of joint operations with international oil companies for exploration in the region, which would cover 288,000 sq km. Yildiz said talks would continue with oil companies, but he did not name any of them.

    Yildiz’s announcement is sure to rev up excitement among other countries in the region where a “scramble” is already said to be on the way for natural gas (OGJ Online, Oct. 4, 2020).

    Indeed, Yildiz’s statement coincided with reports that Cyprus and Lebanon have agreed on to advance with plans to search for oil and gas deposits off their shores in the eastern Mediterranean once their mutual economic zones have been defined.

    Lebanese Prime Minister Saad Hariri said his country also wants to include neighboring Syria in the plans to enable all three countries to benefit from exploration for hydrocarbons.

    “We are finalizing also the economic zone with Syria, then hopefully we will soon be sending this ratification of the whole entire area to parliament,” Hariri told reporters on a visit to Cyprus.

    Cyprus has signed delineation agreements with Egypt and Lebanon, which have agreed to mutually exploit hydrocarbon deposits that lie under their boundaries, but the deal with Beirut has not yet been ratified by Lebanon’s parliament.

    “We had some differences when we made this agreement with Cyprus, and we had some differences with Syria, but now we have a much better relationship with Syria and we are negotiating the economic zone,” said Hariri.

    Despite delays, Cyprus says it will soon launch a second licensing round after the exploration procedure was launched 3 years ago.

    The Nicosia government says it is committed to continuing consultations with its neighbors in the search for hydrocarbon reserves within Cyprus’s exclusive economic zone.

    Cyprus Commerce Minister Antonis Paschalides recently said the island would go ahead with a second licensing round for its remaining 12 blocks after “consultations with other countries are completed.”

    Cyprus has signed a memorandum of cooperation with Israel for surveying and mapping in joint research energy projects. Since then Cyprus has also licensed Noble Energy to search for hydrocarbons in Cypriot waters.

    A Noble spokesperson said the firm already has identified a natural gas prospect inside its Cyprus block, but that there was no estimate of its potential size or chances of success. The Noble spokesperson said no specific date for drilling a well has been set.

    Still, there is gas and oil to be had in the waters of the Eastern Mediterranean, as evidenced by recent efforts.

    Earlier this week, a consortium led by Noble Energy Inc. began drilling at its Leviathan natural gas prospect in the eastern Mediterranean, according to one of the partners in the group (OGJ Online, Oct. 19, 2010).

    The group, which has reported the possibility of finding oil under the gas, earlier estimated Leviathan’s reserves at 16 tcf of gas and gave the project a 50% geologic chance of success (OGJ Online, Aug. 9, 2010).

    Contact Eric Watkins at [email protected].